If you own a property and want to sell it in order to move to a better location, but are finding it hard to find a buyer, renting the property instead might seem like the most logical solution. However, most homeowners who decide to rent their property are unaware of the requirements and how they should go about it.
Crunch the numbers
Renting out your property may not always be the most profitable. If you are paying more in mortgage than you receive as rent (which is also taxed), it does not make sense to continue renting your property, unless you willingly want to endure losses. While it may appear radical, selling your property for some loss is better than renting it out for continuous losses.
Finding good tenants can be harder than you think. You will need to place an advertisement and then screen all applicants thoroughly. The screening process should help you filter the applicants, but will require you to ask for credit records and perform background checks. You will also need to brush up on related local laws and gather information on renting trends in the locality.
Be specific in the lease
The lease you issue should be thorough and detailed, including all particulars, from the included utilities and appliances to terms related to subletting and rent payment. You should also attach details of the property itself and its condition at the time of renting out. Maintenance of a lawn or garden and the property itself is usually the responsibility of the landlord, which means you won’t be able to move away without hiring the services of a property management company. Consider all related costs before you decide to rent out your property.
Keep it professional
While you may be emotionally attached to your home, once you lease it out, the tenant has certain rights over it. Keep your emotions under check and remember that your relation to the tenant is a business relation. Try not to become friendly with the tenant, so that you can address professional issues appropriately.
Consider your long-term plans
If you will be looking to sell your property despite renting it out, you should state that clearly in the lease agreement. If you don’t then you might have a problem arranging showings, because the tenants living in the house might not find it agreeable to be disturbed when buyers visit. On the other hand, a lot of landlords include the option to buy in a lease, because tenants, once settled in, might want to stay and buy the property instead.